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1 Employee Retention Employee Retention Retention and Separation Kerry-Ann Bennett Capella University June 2020
2 Employee Retention To: Java Corp. Company CC: Java Corp Directors From: Kerry-Ann Bennett, Human Resource Manager Subject: Employee Retention and Separation Due to a recent spike in our organization’s turnover rate, I’m writing to inform you of some best practices, strategies and legal aspects of employee retention and separation. The hope of this communication is that we will be able to reduce our turnover rate and retain employees by providing them with the best benefits and rewards of working with Java Corp. Company. Two best practices by HR professionals that would benefit the organization We want to ensure that our employees are engaged in their daily activities and that they feel a sense of satisfaction through employee engagement. According to Noe (2020), employee engagement is the degree to which employees are fully involved in their work and the strength of their commitment to their job and company. Being fully engaged tends to require that employees experience their jobs as fulfilling or allowing them to fulfill important values. A few best practices that would benefit the organization are making jobs more interesting, setting clear and challenging goals, and providing valued rewards that are linked to performance in a performance management system that employees consider fair (Noe, 2020). For example, Aon, a major consulting firm, has measured an association between employee engagement and business performance. Companies scoring high in employee engagement tend to report superior sales, strong operating margins, and returns to shareholders, especially at companies that also link
3 Employee Retention rewards to high performance, have senior leaders concerned about engagement, and offer opportunities for career development (Noe, 2020). An example of the success of employee engagement is that at Gallup, consultants have found that the organizations with the most engaged employees have significantly greater customer satisfaction, productivity, and profitability (Noe, 2020). Retention Strategies to help the organization reduce costly employee turnover? In order to retain employees there’re a few strategies that we can follow to be successful in this area and to avoid costly turnover. Employee turnover is the term applied to the cycle of hiring and firing that happens within an organization. Employee turnover is expensive because the company pay direct exit costs when an employee leaves and incur additional costs to recruit and train new hires. A few strategies that we can implement to reduce costly employee turnover are training and development, compensation, organization culture that includes vision, mission, values and policies.

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